Hasbro MAGIC Business Is Booming: Can Marvel and Hobbit Extend Growth?

HAS' MAGIC business is booming, with Marvel driving record growth and Hobbit offering another catalyst for Wizards' momentum.

Zacks Equity Research

2 min read

Hasbro, Inc. HAS is seeing strong momentum in its Wizards business, led by MAGIC: THE GATHERING. The franchise delivered a 32% revenue increase in the second quarter and more than 34% growth in the first half, helping Wizards revenues jump 27% to $664 million.

The momentum could extend beyond the current quarter, although comparisons will become tougher. The Marvel Super Heroes set achieved record day-one and first-month revenues and became the fastest MAGIC set to reach $300 million. Strong sell-through and reorders suggest demand is not merely the result of loading inventory into distribution channels.

The upcoming Hobbit release offers another catalyst, but investors should temper expectations. Management said it will be a significant release, though smaller than Marvel in terms of SKUs and card count. Therefore, its contribution is unlikely to match the scale of the Marvel launch.

Still, Hasbro sees several structural growth drivers. New-player additions, re-engagement of lapsed players and double-digit distribution growth are strengthening the MAGIC flywheel. The company also expects three first-party and three Universes Beyond sets in 2027, supporting a healthy release pipeline.

Hasbro has raised its full-year outlook, now expecting Wizards revenues to grow in the low-double-digit range. With MAGIC’s player base and distribution expanding, Marvel and Hobbit could help sustain momentum, although the magnitude will vary by release.

HAS Faces Competition From MAT and JAKK

Mattel MAT remains a key competitor to Hasbro in toys, games and entertainment, with well-known franchises such as Barbie, Hot Wheels and UNO. Its ability to monetize popular brands across toys, games, licensing and entertainment creates competition for consumer attention and retail space. Mattel’s established gaming portfolio also overlaps with Hasbro’s efforts to expand MAGIC beyond traditional hobby channels.

JAKKS Pacific JAKK is another publicly traded rival with exposure to licensed entertainment properties and toy categories. Its strategy of developing products around recognizable characters and franchises places JAKKS Pacific in competition with Hasbro for consumer spending, particularly as entertainment-driven toys continue to gain traction.

Hasbro, however, has a differentiated growth engine in MAGIC. Management highlighted rising new-player additions, returning lapsed players and double-digit distribution growth as key drivers of the franchise’s durability.

HAS’ Stock Price Performance & Valuation Trend

Shares of this games and toys manufacturer have gained 17.5% in the past year, outperforming the Zacks Toys - Games - Hobbies industry and the broader Consumer Discretionary sector, but underperforming the S&P 500 Index.

Price Performance

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HAS stock is currently trading at a premium to its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 14.55, as shown in the chart below.

P/E (F12M)

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Earnings Estimate Revision of HAS

HAS’ earnings estimates for 2026 and 2027 have trended upward in the past 30 days to $6.15 and $6.56 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 11% and 6.7%, respectively.

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HAS currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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